Assigning Sequential Numbers to Cash Sales,so That the Accounting Staff

question 68

Multiple Choice

Assigning sequential numbers to cash sales,so that the accounting staff can ensure that every sale has been recorded is required by the internal control principle of:

• A)documenting procedures.
• B)segregating duties.
• C)establishing responsibilities.
• D)restricting access.

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Definitions:

Derivatives Markets

Markets where financial instruments, whose value is derived from other assets, are traded. These include futures, options, and swaps.

Transferring Risk

Shifting potential financial loss to another party through mechanisms like insurance, hedging, or outsourcing, to manage vulnerability to risk.

Investing

The process of distributing funds or resources with the aim of earning a return or profit.

Interest Income

Income earned from deposit accounts or investments that pay interest, such as bonds and savings accounts.